Oppenheimer reiterated an Outperform rating and $88.00 price target on Monolithic Power Systems (NASDAQ: MPWR) following the company's 3Q earnings report. Industrial grew 23% Y/Y in 3Q, led by auto and smart metering. Storage/Compute grew 30% Y/Y driven by Server and high-end NB. MPWR will see a 50% ASP bump in 2017 when PCIe and SAAS PMICs ramp.

Analyst Rick Schafer commented, "Mgmt guided 4Q sales to $103M, besting the consensus $101.5M. We expect Street estimates to move up closer to us following this report. MPWR's long-term organic growth profile remains robust, with 30% of revenue from new products. With potentially transformative eMotion and Field Programmable Power Modules (FPPM) ramping mid-17 to be followed by the Purley transition in the 2H, we see Y/Y topline growth acceleration towards 20%. Greenshoot growth opportunities are ample and diverse across auto, server, industrial, modules, and BMS. We expect continued success penetrating/growing content across markets to sustain organic growth ~15% ahead of peers for the foreseeable future. MPWR's growth/GM story remains in early innings, in our view. We remain buyers with an $88 target."

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